Tricolor’s $945 Million of ABS Cut to CCC and Lower by KBRA

Kroll Bond Rating Agency cut the credit grades on 34 tranches of asset-backed bonds from seven securitizations tied to Tricolor Holdings to CCC and below, according to a note published Monday.

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• KBRA downgraded all of Tricolor’s outstanding ABS that it rated, roughly $945 million in total, including lowering AAA rated securities as many as 19 levels to CC, and lower-ranked debt to C
• “These rating actions reflect the potential missed distribution of funds on the September distribution date and the likelihood of disruptions to collections and noteholder remittances due to ...